Classification of goals and function makes distinction between two category of terms, which are often used interchangeably by managers. Goal refers to formally established and expected state of future, which results from decisions of management and actions of employees. Goals often corresponds to needs of company owners, managers and broad socio-economic environment in which the company operates. Function on the other hand specifies concrete action of people in organization, which is undertaken in order to achieve some formal or informal goals.

Types of goals

Goals or objectives of the organization usually mean a particular state, situational or behaviour requirements for anticipated action (project, task). Due to the importance of the goals there are:

Due to the horizontal and vertical fragmentation of the system there are:

one level goals - for one level of organizational structure,

overall goal and specific objectives - set for specific time horizon and for the whole company,

sub-goals - associated with different organizational units at different levels, from strategic to operational level.

Types of functions

In organization function should be distinguished from other meaning ie. function of an technological object (for example: function of car is transportation of people or cargo).

In this context function is concrete action undertaken to achieve previously set goal, also function is regarded as a structural property of organizational system. Functions are all activities that involve using various resources (material, financial, etc.), in order to achieve established goal.

Correctness of the classification of goals and functions requires evaluation of:

completeness - striving to make sure that there are no missing goals and functions,

separation - avoiding situation of duplication of goals and functions,

complementarity and consistency of classification - to avoid different terms having the same meaning.